NB Global Corporate Income Trust – Shortfall Offer

DJ Carmichael Pty Limited (“DJC”) has been invited to participate in a shortfall offer (“Offer”) being undertaken by NB Global Corporate Income Trust (“NB Global” or the “Trust”).

The Offer will consist of the shortfall from the Trust’s entitlement offer, which is being made on a 1:1 basis to eligible unitholders at a price of $2.00 per unit (“Unit”) to raise up to circa $414 million.

Shortfall Units will be issued pursuant to a product disclosure statement that was lodged with the Australian Securities and Investments Commission (“ASIC”) on 14 May 2019 (“PDS”). The PDS can be found at www.nb.com/NBI. Investors should read the PDS before deciding whether to invest.

Participation in the Offer is available to all retail, Sophisticated and Professional Investors.

The NB Global Corporate Income Trust is a managed investment scheme structured as a unit trust, which has been registered with ASIC. The Trust was listed on the ASX as an investment entity on 26 September 2018 and trades under ASX:NBI.

Information on the Trust

Equity Trustees Limited is the responsible entity of the Trust (“Responsible Entity”) and is the issuer of the PDS. The Responsible Entity has entered into a Management Agreement with Neuberger Berman Australia Pty Ltd (“Manager”) authorising the Manager to provide investment and other services to the Trust, pursuant to the terms of the Management Agreement.

The Trust provides investors with an opportunity to receive monthly income by investing in the bonds of large, liquid companies globally.

The Trust’s investment objective is to provide unitholders with a consistent and stable income stream paid via monthly distributions, while achieving an attractive level of total return (income plus capital appreciation) over a full market cycle.

The investment strategy for the Trust is to invest in and actively manage a portfolio of high yield bonds, with a focus on BB and B rated bonds, issued by companies located globally across both developed (e.g. the U.S. and the U.K.) and emerging (e.g. Brazil and Indonesia) markets, with a strong emphasis on capital preservation by focusing on higher quality within the Global High Yield Market, large and more liquid companies and by avoiding companies with deteriorating financials.

Since listing on the ASX, the Trust has paid monthly distributions to existing unitholders amounting to 6.125 cents per Unit, with the first distribution being paid in mid-November 2018 in respect of October 2018. The distributions paid and declared are in line with the Trust's investment objective and keep it firmly on track to achieving its stated target distribution. Successful applicants under the Offer are expected to begin receiving ongoing monthly distributions in respect of new Units in mid-August 2019 for the month of July 2019.

The key benefits of investing in the Trust include:

  • Global: Exposure to global corporate bonds.

  • Income: The Manager aims to deliver a stable and consistent income stream, which is currently targeted at 5.25% per annum (net of fees and expenses), paid monthly, and expected to remain at the same target rate for the financial year commencing 1 July 2019 (“Target Distribution”).

  • Security: Access to a large, experienced and stable investment team employing a disciplined and repeatable investment process with a strong emphasis on capital preservation by focusing on higher quality (e.g. BB and B rated) high yield corporate bonds and avoiding companies with deteriorating financials.

  • Diversification: Exposure to a portfolio of 250-350 bonds issued by large, liquid global companies and diversified across countries, industries and credit quality.

  • Lower volatility: Access to an asset class with a track record of lower volatility and attractive returns, and, consequently, the potential to enhance the risk/return profile of an investor’s investment portfolio.

  • Scale and resources: Access to a large investment team currently comprising 55 investment professionals and located globally, supported by the resources of the broader Neuberger Berman research platform with over 200 investment professionals.

  • Experience: Access to the expertise of senior portfolio managers averaging 25 years’ industry experience and with a 21 years’ track record managing high yield corporate bonds.

  • Commitment: The Manager has committed to pay for all the Offer Costs.

An indicative timetable for the Offer is set out below:


*The Company has the right to close the bookbuild early with no notice

DJC will receive a fee of 1.25% plus GST on funds raised. For example, for an allocation of $10,000, DJC will receive $125 of which the Adviser will receive $62.50.

Please ensure you contact your Investment Adviser by 10.00am WST Friday, 21 June 2019 if you are interested in participating in the Offer.

The information contained has been prepared by third parties. No warranty of accuracy or reliability is given in relation to any advice or information contained in this document and no responsibility for any loss or damage whatsoever arising in any way for any representation, act or omission, whether express or implied (including responsibility to any persons by reason of negligence), is given by DJ Carmichael Pty Limited or any officer, agent or employee of DJ Carmichael Pty Limited.